Central Banks Take Center Stage in Week of Crucial Decisions

The upcoming week is expected to be pivotal for global markets, with several key central bank decisions and economic data releases scheduled. The US Dollar Index (DXY) closed last week near the 99.00 zone, with little change on the day and holding ground after a brief wobble following Thursday's US inflation release.

The Federal Reserve's decision on Wednesday will be closely watched, with markets leaning towards a quarter-point hike to lift the target range to 4.00% from 3.75%. This follows an August Consumer Price Index (CPI) report that showed core prices running hotter than forecast.

Other key events include Canada's inflation data on Monday, the UK labor market report and Germany's ZEW sentiment survey on Tuesday, and the Bank of England's decision on Thursday.

The European Central Bank is also represented in the speaking circuit, with President Christine Lagarde due to speak several times. However, the Eurozone's own data is limited to final inflation confirmations, industrial production, and the ZEW survey.